Tight upstream wafer foundry capacity continues to accelerate the reshaping of profitability dynamics for chip design companies. CMS reported that its first-quarter 2026 revenue grew by nearly 60% year-on-year, with non-recurring adjusted net profit more than doubling, reflecting significant high-quality expansion in its core business.
According to the quarterly report released on April 22, the company achieved revenue of 325 million yuan in the first quarter, a 57.47% year-on-year increase; net profit attributable to shareholders was 51.25 million yuan, up 48.89% year-on-year; non-recurring adjusted net profit reached 69.04 million yuan, marking a substantial surge of 111.91% year-on-year. Net cash flow from operating activities totaled 90.34 million yuan, representing a 60.87% year-on-year increase, indicating strong collection performance.
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The core driver behind this quarter's performance explosion lies in structural supply-demand imbalances triggered by persistently tight upstream capacity. Shipments reached approximately 1.2 billion units, an increase of about 38% year-on-year, while product prices rose concurrently, pushing the combined gross margin to around 38%—up approximately 4 percentage points year-on-year and 2.7 percentage points quarter-on-quarter. Notably, the company recorded a fair value change loss of approximately 27.59 million yuan related to its holdings in CETC Chip stocks during this period, exerting some drag on net profit and causing the net profit growth rate to fall short of the non-recurring adjusted net profit growth rate.
The price increase effect stemming from supply-demand imbalances, combined with the buffering impact of the company's strategic inventory buildup against rising costs earlier, jointly supported the significant expansion of gross margins this quarter. Whether the tight upstream capacity situation persists will be a key variable determining how long this favorable pricing environment can endure.
<h2>Volume and Price Growth Jointly Drive Rapid Revenue Expansion</h2>
First-quarter revenue grew 57.47% year-on-year to 325 million yuan, driven by both increased shipments and higher product prices. Regarding shipment volume, the company shipped approximately 1.2 billion units this quarter, an increase of about 320 million units compared to the same period last year, representing a 38% year-on-year growth; among these, MO and MO+ series products with higher unit values saw growth of approximately 48%, exceeding the company's overall shipment growth rate, indicating continued optimization of the product mix toward higher-value segments.
Insufficient upstream wafer foundry capacity supply served as the key backdrop for this revenue growth. Capacity constraints led to structural shortages, increasing unfilled orders and providing the company with negotiation leverage to pass price increases downstream. The simultaneous realization of expanded shipment volumes and elevated selling prices jointly supported the rapid revenue growth this quarter.
Non-recurring adjusted net profit reached 69.04 million yuan, up 111.91% year-on-year—approximately double the revenue growth rate—reflecting significant operating leverage effects, with particularly notable improvements in core business profitability.
However, the growth rate of net profit attributable to shareholders (48.89%) was significantly lower than that of non-recurring adjusted net profit. The primary reason is: fluctuations in the stock price of CETC Chip, a listed company held by the company, resulted in a recognized fair value change loss of approximately 27.59 million yuan during this period, which acted as a one-time drag on net profit as a non-recurring item. After excluding the impact of such non-operating factors, the profitability growth logic of the core business becomes clearer.
<h2>Gross Margin Expansion: Price Pass-Through Combined with Strategic Inventory Builds Dual Support</h2>
The combined gross margin for the first quarter was approximately 38%, up about 4 percentage points year-on-year and 2.7 percentage points quarter-on-quarter. The logic behind the gross margin improvement consists of two layers.
First, tight upstream capacity created a supply shortage situation, transmitting upward price pressure to the sales side, allowing price adjustments to be implemented ahead of cost increases. Second, the company's prior implementation of strategic inventory procurement locked in raw materials and processing capacity at lower costs, serving as a buffer during the current cost-upward cycle. The company noted that due to processing lead times, increases in raw material and processing costs lag behind price adjustments; this time gap became a critical supporting factor for gross margin expansion this quarter.
<h2>Cash Flow Continues to Improve, R&amp;D Investment Absolute Scale Expands</h2>
Net cash flow from operating activities reached 90.34 million yuan, a 60.87% year-on-year increase, primarily benefiting from increased collections driven by revenue growth and the company's sustained efforts in strengthening accounts receivable management.
Regarding research and development investment, R&amp;D expenditures totaled 30.81 million yuan in the first quarter, up 33.24% year-on-year, mainly due to increased compensation from newly hired R&amp;D personnel. The proportion of R&amp;D expenditure to revenue stood at 9.48%, down from 11.20% in the same period last year, primarily because rapid revenue growth diluted the ratio effect; however, the absolute scale of investment continued to grow.
On the balance sheet front, as of the reporting period end, total assets amounted to 3.514 billion yuan, with equity attributable to shareholders at 3.228 billion yuan. Short-term borrowings of approximately 199.8 million yuan outstanding at the end of the previous quarter were fully repaid during this reporting period. Financing activities generated a net cash outflow of approximately 207 million yuan, further stabilizing the overall asset-liability structure.

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In the first quarter of 2026, CMS's revenue grew by nearly 60%, while net profit attributable to shareholders reached 51.25 million yuan, a year-on-year increase of 48.89%. Driven by tight upstream wafer capacity, the company shipped approximately 1.2 billion units in the quarter, up about 38% year-on-year. With product prices rising concurrently, gross margin climbed to 38%

CMS Q1 Revenue Surges 57.47% Year-on-Year, Net Profit Rises 48.89%, Shipments Exceed 1.2 Billion Units | Financial Report Insights